Equal Housing Lender
Downpaymentresource.com provides a FREE DPA Lookup for homebuyers, MLO's and Realtors.
But the jewel of Downpaymentresource.com is Down Payment Connect, a subscription based DPA Directory and
promotional tool that provides a searchable database of comprehensive information for each DPA in the subscribers' state.
Plus, a landing page for every MLO to promote DPA from!
A FREE public-facing and MLO resource that pares down all available programs for prospective homebuyers.
A searchable subscription database that provides comprehensive detail for city, county, SHIP & state DPA as well as proprietary and wholesale programs. Also, an MLO landing page to promote DPA.
If you are new to down payment assistance programs, check out some of our MLO FAQs.
DownPaymentResource.com is a website that houses detail about all U.S. DPA programs including popular county SHIP programs, city and state programs and now even DPA available to licensed loan originators through mortgage wholesalers.
Access Down Payment Resource directly to get a snapshot of what DPA programs are available to you.
Details about available DPA programs and charting differences between 1st mortgages and added DPA products has been a struggle in the past for loan originators. Through
Down Payment Connect, a subscription based service, you can have access to a statewide DPA directory and are provided a DPA landing page that connects clients directly to you. The robust DPA Directory has recently added filters that can help sift out DPA for clients based on income levels, property type, location, if a grant or 2nd mortgage and more!
1) Wholesaler FHA and conventional 1st mortgage that allows outside 2nd mortgage to be added!
2) 1st mortgage and 2nd DPA mortgage combined financing where both programs are originated and underwritten at one wholesaler!
3) In Florida, the Fl Housing Finance Corp (FHFC) Hometown Heroes, Bond TBA with higher income levels!
4) DPA programs that allow renovation!
5) Wholesaler Proprietary DPA Mortgages with no max. income or FTHB requirements! And non-occupying co-borrowers are allowed for some programs!
Nearly every DPA income calculation uses HUD Income Limits found at HUD.gov. Go here , pick the state and then select a county and you will be directed to an Income Limits Summary that provides Extremely Low (30%), Very Low (50%), and Low Income (80%)Limits that change based on # of Persons in Family. Median Family Income is 100%. But check your specific program critieria which can vary.
This is not the same income that you will see on Fannie Mae and Freddie Mac Area Median Income Lookup Tools. That income is used per person and is critieria for Affordable conventional mortgages that can allow a 3% down payment and lower PMI.
State Bond and Hometown Heroes income levels are also calculated differently. Check guidelines for family size and max. income.
In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. Some wholesalers have their own 1st and 2nd DPA mortgage programs where both are underwritten at one lender. Other wholesalers allow an outside 2nd mortgage to their FHA and/or conventional Fannie Mae or Freddie Mac mortgages per allowable CLTV guidelines. In 2023, the Florida Housing Finance Corp. (Fl only) made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders. Recently, a growing number of wholesalers have added propritary DPA programs that offer no maximum income level, no FTHB requirement and co-borrowers are allowed.
Why are these multiple channels of DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out from the state, wholesalers can still provide independent loan originators with DPA programs.
Some DPA programs require that the MLO and also the realtor must take a class to be certified to provide specific DPA programs for mortgage clients. Check with each DPA provider.
Some DPA providers require that the DPA client meets with the program admin. upfront to make application and get approval 1st. Others require submission through a portal when the 1st mortgage is being submitted or is already approved. Check with the DPA provider to find out these details upfront as this can add to the timeframe of your contract.
The answer is usually No, so make sure to thoroughly check guidelines for any differences that will need to be abided by. Here's a few things that can be different:
Always thoroughly check 2nd mortgage guidelines.
In the past, DPA needed to be included in the refinance of the 1st mortgage. However, in today's higher rate environment, more and more DPA programs are allowing for a resubordination of the DPA 2nd to a refinanced 1st mortgage. There are usually specific restrictions on this, so check DPA guidelines for each program.
If you are using Down Payment Connect, this direction can be found under Program Terms in Repayment Notes.
No. DPA and forgiveness programs are for owner-occupied properties. The 2nd DPA mortgage will need to be paid off.
Many cities and localities including Indian Tribes and counties (usually listed as SHIP and NSP under type) have downpayment 2nd mortgages and grant assistance for eligible homebuyers. Florida at the state level also has DPA that is both the 1st and 2nd mtg and also just a 2nd mtg.
City, county, and state DPA programs are funded by local or state government entities and specific dollar amounts are allocated throughout the year.
In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. In addition to combined 1st mortgages with a 2nd mortgage DPA included, more 1st mortgages where DPA 2nds can be added with select wholesalers are coming into the market. In 2023, the Florida Housing Finance Corp. made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders, making the independent loan originator channel of DPA business more robust and competitive than ever! Why are these multiple channels of DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out, wholesalers can still provide independent loan originators with DPA programs. And a number of wholesaler programs offer higher ratios with better credit scores, a few have no max. income criteria, and interest rates are highly competitive with state programs.
Wholesaler proprietary programs are available both in and outside of Florida.
Check County SHIP Funds First!
The benefit of using county SHIP is that it provides a 2nd mortgage that is attached to an FHA, VA, Conventional, and USDA 1st mortgage with current interest rates. Sometimes 1st and 2nd DPA programs have a higher 1st and 2nd mortgage interest rate.
However, county SHIP and local city DPA often have separate underwriting guidelines and restrictions, like income and ratio maximums and credit score minimums that are different than the 1st mortgage.
Also, many county SHIP and city DPA programs require loan originators, realtors, and the client to take a HUD-approved class on homeownership in order to utilize DPA funds. Make sure to check all DPA underwriting criteria, availability of funds, and if you must be on an approved list before issuing a client pre-approval to find a home.
Please let us know when you hear of new programs across the U.S. by emailing clients2homeowners@gmail.com.